Japan Plans Blockchain System for Instant Stock and Bond Settlements
Japan plans to establish a blockchain-driven financial system to enable near-instant settlement of stocks and government bonds. This summer, the Financial Services Agency (FSA), the Ministry of Finance, and the Bank of Japan (BOJ) will form a study group, targeting a development blueprint by early 2027. The new system is expected to commence operations within a few years, with full implementation anticipated by the early 2030s, thereby replacing the current T+2 and T+1 settlement cycles. The initiative will incorporate tokenized bank deposits for direct securities transactions, and around 40 banks are currently testing interbank transfers using these tokenized deposits. Additionally, Japan is revising regulations for crypto assets and investigating blockchain applications for regulated payments and international remittances.
Key facts
- Japan plans to build a blockchain-based system for instant settlement of stocks and government bonds.
- The Financial Services Agency (FSA), Ministry of Finance, Bank of Japan (BOJ) and domestic financial institutions will launch a study group this summer.
- A development plan could be produced as early as the beginning of 2027.
- The system could become fully operational in the early 2030s.
- Japanese stock trades currently use T+2 settlement; government bonds use T+1.
- The proposal includes using tokenized portions of commercial banks' current-account balances at the BOJ.
- Roughly 40 regional and online banks are preparing a proof of concept for interbank transfers using tokenized deposits.
- Japan Securities Clearing Corporation began a trial with Mizuho, Nomura and Digital Asset to explore tokenized Japanese government bonds as collateral.
Entities
Institutions
- Financial Services Agency (FSA)
- Ministry of Finance
- Bank of Japan (BOJ)
- Nikkei
- Japan Securities Clearing Corporation
- Mizuho
- Nomura
- Digital Asset
- Mizuho Bank
- MUFG
- SMBC
- Project Agorá
Locations
- Japan